The Government has recently announced that the adult minimum wage rate will increase by 1.5% to $23.50 per hour, effective from 1 April 2025. This modest increase reflects a cautious approach to wage-setting, considering the ongoing economic recovery and labour market conditions.
The Coalition Government has emphasised the need for balance, acknowledging the pressures on both businesses and employees. With businesses still navigating the impacts of high interest rates and recessionary conditions, this increase aims to provide some relief to lower-income workers while minimising additional financial strain on employers.
To ensure a smooth transition, Business Canterbury members should take the following steps:
Communicate with Employees: If you have team members earning the minimum wage, advise them of this change closer to the implementation date.
Update Payroll Systems: Ensure your payroll software and processes are ready to implement the new rate by 1 April 2025.
Review Pay Structures: If you have employees earning just above the minimum wage, consider whether any adjustments may be needed to maintain pay differentials.
Assess Business Impact: Factor this wage increase into your financial planning to ensure your business remains sustainable.
For more information on these changes and how they may affect your business, contact us at hradvice@cecc.org.nz.
Business Canterbury, in collaboration with the BusinessNZ network, is advocating for: